There is no doubt that the stress levels for some homeowners have been running high. This is likely most true for those leaving behind historically low interest rates as they come to the end of their term in 2024. During the pandemic, the Bank of England’s Monetary Policy Committee (MPC) lowered the standard base interest rate to the lowest in the Bank’s history to almost zero at 0.1%. It reached this low in March 2020 and was the last time a cut has been made by the MPC. Due to inflation, the MPC began increasing the rate in December 2021 and it grew to 5.25% by August 2023.

There are many homeowners who mortgaged during the period in which an historic interest rate from a lender was available and that cheap borrowing opportunity is coming to an end as their mortgage term expires.

The Bank’s base rate has held steady since the September meeting last year. While the first base rate cut was expected in early spring, it has been pushed off by the MPC. Now, the forecast is for it to possibly happen in the next MPC meeting set for 1 August. There is not a meeting scheduled in July. If the rate is not reduced in August, the next opportunity is in September.

Luckily for borrowers, lender rates have already begun dropping as if the MPC vote was yesterday. Without having to wait for the MPC vote, borrowers are going to find the lending market has become competitive. There are low interest rate deals to be found.

Homeowners coming off of their current mortgage deal will have the opportunity with a remortgage to lock in a popular fixed rate deal. Choosing a remortgage allows the homeowner to avoid the lender’s standard variable rate (SVR) and save money. The interest rate of a SVR could be double or more the lender’s SVR. Also, only a remortgage could offer the ability for the homeowner to choose from some of the popular longer terms and lower rates on the current lending market. 

Even those with complicated remortgage needs are finding lenders are offering opportunities to rescue them from unique issues. For instance, there are lenders offering over 100% remortgages, such as 110% or 120% remortgages which are perfect for those homeowners who discover they are in negative equity. This would occur if their property value declined below the debt of their mortgage.

Remortgages could also be more complicated for homeowners changing their marital relationship or for those that are business owners. The competitive lending market could be more open to and advantageous for homeowners that may have found it less so just weeks or months ago.

To discover what remortgage opportunities are available, a homeowner has simply to shop online for remortgage quotes. Visiting the website of a remortgage broker could in mere minutes provide numerous quotes from a variety of lenders, and possibly even exclusive deals. Homeowners could also shop from website to website of remortgage lenders to gather quotes.

Once the homeowner has remortgage quotes, they can review and compare them to determine the best remortgage deal. Many will find deals reflective of the anticipated cut from the MPC due next month. 

Waiting for even lower rates might not be the best strategy. Should the optimism of lenders decline, the current rates could disappear quickly. Also, the rates available now are due to the competition between lenders for the attention of borrowers and they might be offering their best deals from the start rather than waiting for the MPC vote next month. If demand should prove to be stronger than expected, again lenders could easily pull their lowest deals.

Homeowners have unique and early savings opportunities in current remortgage deals and for those that could benefit and move off a SVR or avoid one if their mortgage term is due to expire soon, shopping for a remortgage deal now could prove to be a smart move.